Senate Overturns IRS Crypto Rule in Landmark Victory for Decentralized Innovation
The Senate voted 70-28 to crush an IRS rule targeting DeFi developers, delivering a sweeping crypto victory now heading to Trump’s desk for final approval.
U.S. Senator Ted Cruz (R-TX) announced on March 26 that his resolution to overturn a controversial Internal Revenue Service (IRS) rule targeting cryptocurrency developers has cleared the U.S. Senate with strong bipartisan support. The measure, which passed in a 70-28 vote, follows prior approval by the Senate and the U.S. House of Representatives. It now heads to President Donald Trump’s desk.
Cruz’s resolution seeks to nullify a regulation finalized on Dec. 30, 2024, which critics say wrongly classifies developers of decentralized finance (DeFi) software as brokers, despite their lack of direct involvement in handling cryptocurrency transactions. Cruz celebrated the Senate outcome and cast the vote as a defense of innovation and economic autonomy.
“Cryptocurrency has become a leading driver in creating new markets and diversifying our economy. The American people know it and support crypto, and that support was reflected this evening in the overwhelming bipartisan majority that voted for my resolution,” he stated, adding:
I look forward to the President signing it into law and I am proud to be leading the fight to defend cryptocurrency from Biden’s abusive regulatory assault.
The IRS rule at the center of the dispute, titled Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales, aimed to extend broker classification to developers facilitating digital asset trades through software, sparking pushback across the tech and crypto sectors.
As lawmakers moved the resolution forward, critics stressed:
The rule defined those developers as ‘brokers,’ even though they did not touch any of the cryptocurrency being exchanged. The resolution has passed both chambers of Congress and now awaits the President’s signature to become law.
A wide array of crypto policy organizations, including over 75 members of the Blockchain Association, signed a letter endorsing Cruz’s measure. Other backers included the Digital Chamber, Uniswap, Paradigm, Coin Center, DeFi Education Fund, and regional blockchain advocacy groups from Texas, Pennsylvania, South Carolina, Ohio, and more.
